S&P rates Express notes B

Standard & Poor's said it affirmed its B+ corporate credit rating on Express LLC and assigned a B rating to its $200 million senior unsecured notes with a recovery rating of 5, indicating an expectation for 10% to 30% recovery of principal in the event of default. The agency also said it upgraded its existing term loan to BB from B+ because of a revision of the recovery rating to 1 from 4.

The outlook is positive.

The revised recovery rating is a result of S&P's reassessed valuation of the company to reflect its much improved operating performance and additional cash interest from the new debt issuance, S&P said.

The ratings reflect the company's participation in the highly competitive and volatile specialty apparel segment, inconsistent operating results for the past few years and high leverage, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.